Filed: 2013-12-19
EB-2013-0416
Exhibit G1
Tab 6
Schedule 1
Page 1 of 5
RETAIL TRANSMISSION SERVICE RATES
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1.0
INTRODUCTION
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Hydro One proposes to update the Retail Transmission Service Rates (“RTSR”) approved
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in proceeding EB-2013-0141 to reflect the proposed new Uniform Transmission Rates
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(“UTR”) effective January 1, 2014 approved by the Board as part of proceeding EB-
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2012-0031. It is expected that the Board will approve new UTRs on an annual basis. In
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the event a new UTR is approved at the time a Draft Rate Order for new Distribution
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rates in a specific year is prepared over the Custom COS period, Hydro One will update
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the proposed RTSR to reflect the new UTR as a part of the Draft Rate Order process.
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Changes to the UTR will also affect some Sub-Transmission (“ST”) rates, as discussed in
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Exhibit G1, Tab 4, Schedule 1. As such, the impacted ST rates will also be updated as a
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part of the Draft Rate Order process.
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Aggregation at a TS or HVDS for purposes of billing RTSR charges was approved by the
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Board in proceedings EB-2004-0451, EB-2007-0681 and EB-2009-0096. For customers
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that are being aggregated for purposes of RTSR, the aggregated demand is arrived at by
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applying losses to the measured quantities of individual delivery points.
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1.1
Hydro One Distribution Situation
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Hydro One is billed by the IESO at each of its transmission delivery points for the
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transmission of power to its Retail customers and Embedded LDCs. Total transmission
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charges are the sum of all applicable Network, Line Connection and Transformation
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Connection charges at these delivery points. Delivery point charges are based on the
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contribution of customer’s load downstream of the delivery point. A large amount of
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power purchased by Hydro One is supplied to its ST customer class, which includes
Updated: 2014-05-30
EB-2013-0416
Exhibit G1
Tab 6
Schedule 1
Page 2 of 5
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embedded LDCs. For these customers, metering data is available to accurately identify
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the ST share of the transmission charges incurred by Hydro One. Given the need to first
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split transmission charges between ST and non-ST customers, Hydro One does not use
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the Board’s RTSR workform approach for establishing its RTSR rates. Rather, Hydro
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One uses the methodology that has been reviewed and approved by the Board for Hydro
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One’s distribution rate filings since 2008, and is consistent with the methodology
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outlined in Chapter 11 of the 2000 Distribution Rate Handbook. This methodology is
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described in Section 2 of this Exhibit.
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1.2
Approved Transmission Rates
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The UTR approved in proceeding EB-2012-0031, effective January 1, 2014 comprise the
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following charges:
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
A Transmission Network charge of $3.82/kW to be applied to the demand at each
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transmission delivery point based on billed demand which is defined to be the larger
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of: a) 85% of non-coincident peak from 7 a.m. to 7 p.m. IESO business days or b) the
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peak coincident with the transmission system peak.
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
Line and transformation connection charges of $0.82/kW and $1.98/kW, respectively,
which are applied to the non-coincident peak at each transmission delivery point.
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These rates apply to the load at the transmission delivery point which is defined to be on
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the high voltage side of the transmission station transformer. Since metering is typically
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on the low voltage side of a transmission station, appropriate loss factors have been
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applied to adjust the meter readings to the high voltage side of the transformer.
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Updated: 2014-05-30
EB-2013-0416
Exhibit G1
Tab 6
Schedule 1
Page 3 of 5
1
2
2.0
ESTIMATING RETAIL TRANSMISSION SERVICE CHARGES FROM
IESO
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To estimate the transmission charges from the IESO, Hydro One used the forecast 2015
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load at each of its transmission connections and applied the currently approved
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Transmission rates as of January 1, 2014. This resulted in a estimated charge of $242.4
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million for Network charges, $117.4 million for Transformation Connection charges and
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$44.1 million for Line Connection charges for a total of $403.8 million, as shown in
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Table 1.
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The estimated 2015 transmission charges from the IESO need to be recovered from all
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Hydro One’s distribution customers. For the ST customer class, sufficient connectivity
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data exists to allow Hydro One to allocate the appropriate share of transmission charges
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based on the total ST customer’s load coincident with the IESO’s monthly billing peak
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for their transmission delivery point. This results in 47% of the $403.8 million being
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allocated to the ST class with the residual 53% being recovered from the other rate
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classes. Among the other rate classes, hourly load shape data is used to allocate the costs
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to each individual class, consistent with the methodology of Chapter 11 of the 2000
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Electricity Distribution Rate Handbook.
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Table 1 shows the estimated 2015 IESO charges allocated to the customer classes. Since
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the data in Table 1 will be impacted by changes to the UTR, Hydro One proposes to
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provide an update to the table below as part of the Draft Rate Order process for
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subsequent years of the Custom COS period.
Updated: 2014-05-30
EB-2013-0416
Exhibit G1
Tab 6
Schedule 1
Page 4 of 5
1
Table 1
2
Forecast 2015 IESO Transmission Charges by Rate Class
$44,066,378
Tx
Transformation
$117,362,702
Total IESO
Bill
$403,839,347
$114,553,663
$18,633,842
$55,996,318
$189,183,823
47%
$127,856,604
$14,931,720
$35,833,193
$35,410,589
$2,779,321
$3,991,309
$6,212,497
$13,906,815
$13,933,555
$118,643
$121,617
$617,346
$25,432,536
$2,997,095
$7,359,241
$7,226,700
$664,974
$709,395
$1,139,060
$2,526,900
$2,614,135
$21,797
$23,192
$150,047
$61,366,384
$7,231,717
$17,757,177
$17,437,367
$1,604,522
$1,711,706
$2,748,447
$6,097,178
$6,307,668
$52,593
$55,959
$362,050
$214,655,524
$25,160,533
$60,949,611
$60,074,656
$5,048,816
$6,412,410
$10,100,003
$22,530,893
$22,855,358
$193,033
$200,768
$1,129,443
53%
Tx Network
Tx Line
IESO Bill
$242,410,267
ST
Retail
UR
R1
R2
Seasonal
UGe
UGd
GSe
GSd
DGen
USL
Lighting
Share
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4
3.0
PROPOSED 2015 RTSR
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The transmission charges allocated to each rate class shown in Table 1 are divided by the
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corresponding billing parameters for each class, resulting in the proposed 2015 RTSR
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rates shown in Table 2. Table 2 also shows the currently approved RTSR filed in
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Proceeding EB-2013-0141.
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The proposed RTSR for 2015 will be updated in the event new UTR are approved to be
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effect in 2015, at the time the 2015 Draft Rate Order for this proceeding is submitted. An
Updated: 2014-05-30
EB-2013-0416
Exhibit G1
Tab 6
Schedule 1
Page 5 of 5
1
update to Table 2 will be provided as part of the Draft Rate Order process for subsequent
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years of the Custom COS period.
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Energy-billed customers will be charged RTSR applied to metered quantities uplifted for
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losses. Demand-billed customers will be charged the rates shown, uplifted for losses.
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For customers that installed load displacement generation after October 1998, the RTSR
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connection charge is billed on gross demand consistent with section 11.3.2.5 of the
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Distribution Rate Handbook.
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Table 2
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Proposed 2015 RTSR
RATE CLASS
Urban ($/kWh)
R1 ($/kWh)
R2 ($/kWh)
Seasonal ($/kWh)
Urban General Service energy ($/kWh)
Urban General Service demand ($/kW)
General Service energy ($/kWh)
General Service demand ($kW)
Distributed Generator ($/kW)
Unmetered Scattered Load ($/kWh)
Street and Sentinel Lights ($/kWh)
ST ($/kW)
Approved 2014 Rates
Line
Network
Connection
0.00707
0.00489
0.00719
0.00499
0.00702
0.00470
0.00663
0.00460
0.00544
0.00358
1.78
1.17
0.00527
0.00350
1.71
1.11
0.36
0.23
0.00527
0.00350
0.00442
0.00297
0.65 Line
3.23
1.62 Transf.
Proposed 2015 Rates
Line
Network
Connection
0.0071
0.0048
0.0066
0.0046
0.0065
0.0045
0.0053
0.0043
0.0062
0.0038
1.9346
1.2106
0.0058
0.0036
1.5478
0.9911
0.5175
0.3245
0.0046
0.0030
0.0039
0.0032
0.7512 Line
3.4482
1.7838 Transf.
* For customer classes that do not have separate proposed Line and Transformation charges, the Line Connection charges shown
include Transformation charges.
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